Arex Industries Buyback 2024 vs Vls Finance Buyback 2024

The Buyback is being undertaken for the following reasons:

1. The Buyback will help the Company to return surplus cash to its shareholders holding Equity Shares broadly in proportion to their shareholding.
2. The buyback consists of a reservation for the small shareholder. The company believes that this reservation for small shareholders would benefit many public shareholders who would be classified as "small shareholders".
3. The buyback may help in improving financial ratios like return on equity, by reduction in the equity base, thereby leading to a long-term increase in shareholders' value.
4. The Buyback gives an option to the shareholders holding Equity Shares of the Company, who can choose to participate and get cash in lieu of Equity Shares or they may choose not to participate and enjoy a resultant increase in their percentage shareholding, post the Buyback offer.

Having regards to the healthy cash flows that the Company has been able to consistently generate, the future projected cash flows of the Company and the anticipated funds required for capital expenditure and working capital to meet the expected future growth of the Company, the Buy-back is expected to achieve the following objectives:

• optimize returns to shareholders;
• enhance overall shareholders' value; and
• optimize the capital structure

The Buy Back, which is being implemented through the Tender Offer as prescribed under the SEBI Buy Back Regulations, would involve allocation of 15% of number of Equity Shares that the Company proposes to Buy Back or several Equity Shares entitled as per the shareholding of Small Shareholders, whichever is higher, to Small Shareholders. The Company believes that this reservation of 15% for

The Buyback gives the shareholders holding Equity Shares of the Company the option to either (i) participate and receive cash instead of Equity Shares to be accepted under the Buyback Offer or (ii) choose not to participate and enjoy a resultant increase in their percentage shareholding post-buyback Offer without additional investment.